Germany's Bold Economic Revival: Record Investments in Future Budgets

Germany's government has taken a decisive step to invigorate its sluggish economy by approving a draft budget for 2025 and a financial framework for 2026. The proposed budgets feature record investments aimed at fostering economic growth in the EU's largest economy, which has struggled to grow for two consecutive years.

The draft budgets lay out an ambitious spending plan, with investments reaching 115.7 billion euros in 2025 and rising to 123.6 billion euros by 2026. A key component of the fiscal strategy includes a significant boost in defence spending, set to increase to 3.5% of Germany's economic output by 2029.

To fund these initiatives, Germany plans to borrow extensively, with projections around 847 billion euros, including a special infrastructure fund. By setting this financial course, Germany aims to modernize its infrastructure, ensure security, and foster a robust, future-proof economy.

(With inputs from agencies.)